Our website uses cookies and other technologies so that we can remember you and understand how you and other visitors use our website. By continuing to browse this Site, you are agreeing to our use of cookies. Click here for more information on our Cookie Policy, including how you may control the information we collect about you through cookies.Read MoreAccept

Luxury Home Prices Continue to Rise

16 May, 2013, Hong Kong – While luxury home prices in Asia posted gains in Q1 2013, the rate of growth has moderated over the past two quarters as cooling measures across a number of markets take hold and are gradually dampening buyer sentiment. Among 13 major markets tracked, nine recorded modest price rises ranging from 0.7% to 3.0% q-o-q.

Asia Luxury Residential Rental Index

Source: CBRE Research

Due to the constrained lending environment in China, India and Vietnam during the quarter, developers were forced to seek alternative sources of funding. Price growth was led by New Delhi and Mumbai, which saw gains between 2-4% q-o-q due to a lack of supply. Other strong performers included Manila and Kuala Lumpur where buying demand remained firm.

While price growth was also recorded in Beijing, Shanghai, Guangzhou and Shenzen, sales volume declined due to government cooling measures. Deal flow also slowed in Hong Kong and Singapore following an increase of stamp duty on all property transactions.

Asia Luxury Residential Price Index

Source: CBRE Research

“We expect demand from end-users and long-term investors to remain firm, but that buyer sentiment will continue to be dampened by government cooling measures,” Dr. Nick Axford, Executive Director and Head of CBRE Research, Asia Pacific commented. “Overall, prices look set to hold steady or easy slightly, but we are likely to see buyers taking longer to negotiate and conclude deals. The luxury residential leasing market is also expected to remain subdued.”